Foreign Tax Credit or Deduction

Posted @ July 22, 2012, 5:49 am under (Expat Taxation Services)

Foreign Tax Credit or Deduction

You may claim a tax credit or deduction for taxes paid to foreign countries. Only deduction or the tax credit can be claimed, but not both, for all foreign taxes paid. There are no time requirements like there are for the income exclusions. The foreign tax credit is available to anyone who either worked in a foreign country or has investment income from a foreign source.In order to claim this benefit, you do not need to live or to work in that foreign country